With the University of Michigan consumer survey showing a reading of 78.8 for January – the highest reading since July 2021 – and inflation data showing inflation cooling toward the Federal Reserve's 2% target rate, the sentiment crisis could be coming for many consumers be over.
Kyla Scanlon, author of “In This Economy?: How Money and Markets Really Work,” joins Yahoo Finance to discuss the next move in consumer sentiment and look at future trends in the broader market.
The financial content creator comments on current consumer sentiment as revealed by Vibecession notes:
“When you ask people what their biggest economic concern is, it's often that things in the supermarket are very expensive and that's why I think inflation and a decline in inflation is the key. However, when we talk about a decrease in inflation, a lot of people think that means prices will decrease, but that is deflation. And so inflation improves. We are seeing a big recovery. It is much closer to the Fed's target of 2%. But I think that prices will remain high. They won't sink again. I think that’s going to cause a lot of frustration for people.”
Editor's Note: This article was written by Nicholas Jacobino
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